6 Importance of branding
Beyond just a memorable logo, good branding increases the value of a company, provides employees with direction and motivation, and makes acquiring new customers easier. So what exactly is a brand?
The short answer is: everything
A brand represents the sum of people’s perception of a company’s customer service, reputation, advertising and logo. And when all of these parts of the business are working well together, the overall brand tends to be healthy.
1. Branding improves recognition
One of the major components of a brand is a logo because, as the “face” of a business, it’s what people instantly recognize. A professional logo design is simple enough to be memorable, but powerful enough to give the desired impression of your company
2. Branding creates trust
Just as people are more likely to purchase from a business that appears polished and legitimate, families need to feel comfortable before committing to a product or service.
3. Branding supports advertising
Advertising is another important component of a brand. Both the medium chosen and demographic targeted for advertisements help build a brand.
4. Branding builds financial value
Companies who publicly trade on a stock exchange are valued at many times the actual hard assets of the company. Much of this value is due to the branding of the company. A strong brand often guarantees future business.
5. Branding inspires employees
Many employees need more than just work — they need something to work toward. When employees understand the mission of a business and its reason for being, they are more likely to feel that same pride and work in the same direction to achieve the goals the business owner has set. Having a strong brand is like turning the company logo into a flag the rest of the company can rally around.
6. Branding generates new customers
Branding can also help a business get word-of-mouth referrals.